When demand or supply is relatively elastic, it means that the quantity demanded or supplied is highly responsive to changes in price.
Related terms
Price Elasticity of Demand: Price elasticity of demand measures how responsive consumers are to changes in price. If consumers are highly sensitive to price changes and adjust their quantity demanded accordingly (elastic demand), then demand is considered price elastic.
Cross Elasticity of Demand: Cross elasticity of demand measures how sensitive the quantity demanded of one good is to changes in the price of another good. If two goods are substitutes or complements, there will be a significant cross elasticity between them.
Elasticity Coefficient: The elasticity coefficient quantifies the responsiveness of either demand or supply to changes in price. It is calculated by dividing the percentage change in quantity by the percentage change in price.